Do SEP injunctions alter market shares? Causal evidence from the Nokia–OPPO dispute in Europe
Do SEP injunctions alter market shares? Causal evidence from the Nokia–OPPO dispute in Europe
This study examines whether standard essential patent (SEP) injunctions reshape the European smartphone market structure. Using the 2022Q3 German injunction against OPPO as a natural experiment, we construct a brand × country × quarter panel across five major European markets (2021–2024). Employing a Difference-in-Differences (DiD) model with brand × country and quarter fixed effects, complemented by event study approach, we identify the injunction’s impact on market share. According to the results, the patent litigation leads to a significant decline in the market share of the treatment group, which confirms the negative impact of SEP litigation on the market performance of the vendors. The conclusions remain robust to the replacement of the explanatory variable, different event windows, placebo periods, and wild-cluster bootstrap inference.
Europe, SEP, difference-in-differences, injunctions, smartphones
1-6
Deng, Liang
c837ff68-feea-4f08-a52e-fb6dabc9eded
17 December 2025
Deng, Liang
c837ff68-feea-4f08-a52e-fb6dabc9eded
Deng, Liang
(2025)
Do SEP injunctions alter market shares? Causal evidence from the Nokia–OPPO dispute in Europe.
Applied Economics Letters, .
(doi:10.1080/13504851.2025.2604636).
Abstract
This study examines whether standard essential patent (SEP) injunctions reshape the European smartphone market structure. Using the 2022Q3 German injunction against OPPO as a natural experiment, we construct a brand × country × quarter panel across five major European markets (2021–2024). Employing a Difference-in-Differences (DiD) model with brand × country and quarter fixed effects, complemented by event study approach, we identify the injunction’s impact on market share. According to the results, the patent litigation leads to a significant decline in the market share of the treatment group, which confirms the negative impact of SEP litigation on the market performance of the vendors. The conclusions remain robust to the replacement of the explanatory variable, different event windows, placebo periods, and wild-cluster bootstrap inference.
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Do SEP injunctions alter market shares Causal evidence from the Nokia OPPO dispute in Europe TF
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Accepted/In Press date: 10 December 2025
Published date: 17 December 2025
Keywords:
Europe, SEP, difference-in-differences, injunctions, smartphones
Identifiers
Local EPrints ID: 507703
URI: http://eprints.soton.ac.uk/id/eprint/507703
ISSN: 1350-4851
PURE UUID: fb5fcfcb-2715-46ba-8bd9-972a00c10600
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Date deposited: 18 Dec 2025 17:50
Last modified: 07 Jan 2026 15:23
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Author:
Liang Deng
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